Sold for scrap
SA Agulhas auction evokes criticism
SOUTH AFRICA: The sale by auction of the SA Agulhas has drawn some criticism from the previous owners who contend that she was significantly undervalued and had more than scrap value.
It seems, however, that the market has spoken. With the first round of bidding not yielding a result, auctioneer Ariella Kuper of Solution Strategists has confirmed that a reconstituted auction which drew interest from an additional bidder managed to secure a bid.
“The first auction of five bidders on 22 January failed to hit the reserve price,” she said, adding that second auction saw the vessel secure a bid of $1,020,000 on the fall of the hammer.
According to Kuper the auction attracted interest from several foreign bidders, some of whom may have been interested in her for more than her scrap value.
“We had strong interest throughout. Several looked at her as possible rebuild and to use her for training and research.”
“We had strong interest throughout. Several looked at her as possible rebuild and to use her for training and research,” she reported. Ultimately, however, due to the icebreaker’s condition and age, she could not attract a buyer with deep enough pockets to return her to active duty.
“Sadly, the unknown risks involved, her age and condition and required spend made them uncertain and ultimately she was sold as scrap,” confirmed Kuper.
Survey under scrutiny
Captain Stefan Bülow of J*S Maritime has responded critically to the official survey report provided to the market. In an email to Maritime Review, he described the document as a “nonsense report” and highlighted several areas of concern.
Noting the extensive refurbishment project that was undertaken in 2024 as well as the subsequent seven-week Antarctic expedition, he writes that such a voyage would have been “impossible to perform ... with an unfit vessel at scrap value”.
Scrutinising assertions made by the surveyor, Gary Walsh, within the report, Bülow outlined his concerns in an email to other stakeholders involved in the sale of the vessel. The email lists several specific inaccuracies that include reference to the drydocking, the condition of the engines as well as the ultimate conclusion of the report.
Although acknowledging that work was needed to return the vessel to working condition, Bülow confirmed in a follow up telephone conversation with Maritime Review that he still believed in the viability to extend the working life of the ship.
Bülow says he bases much of this on a survey undertaken just a month before by Gontier Marine Consulting in November last year which concludes that “minor work (needs) to be completed in order for the vessel to pass Class requirements and for sea trials to be carried out for all Class certificates”.
The market has spoken
Responding to questions on his survey, Gary Walsh, notes that the aim of his survey was to provide an indication for the reserve price set by the auctioneers. Given that the first round of bidding failed to attract an offer that met the reserve price, seems to indicate that there was a limited market for the vessel.
“In my opinion, something is really only worth what someone is prepared to pay for it and that is based on either their desire to own it or they have use for it and can make money with it,” says Walsh, commenting on the outcome of the auction.
“In my opinion, something is really only worth what someone is prepared to pay for it and that is based on either their desire to own it or they have use for it and can make money with it.”
“I stand by my conclusion that the vessel has passed her sell-by date and should be scrapped. For this vessel to be put back in service is going to need an entity with very deep pockets, and a need for this type of vessel. Had the vessel been refurbished and looked after correctly she would not be in the state of disrepair which I found her in during my survey,” he added in an email that addressed some of the concerns raised by Bülow.
“It is always sad to see a piece of history lost to a potential scrap yard, but I can say the campaign we ran on a global level and the marketing to attract end users and not just scrap participants did justice to trying to find her an alternative ending,” says Kuper.
“Sadly, the free market spoke, and her chapter has come to a close, but her legacy will always live on for her role in putting South Africa on the map regarding ice breaker capabilities since 1978,” she adds summing up the conclusion to the life of an iconic vessel.
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